tv World Business Report BBC News July 25, 2017 5:30am-5:45am BST
president trump's son—in—law and close adviser, jared kushner, has told congressional investigators that he didn't collude with russia during last year's election. he faces another day of questioning but insists he has "nothing to hide". the parents of terminally—ill baby, charlie gard, are preparing to spend the final few days with him, after ending their legal battle. they say he won't reach his first birthday next week. the vatican has said it is shutting off all its fountains, including those in st peter's square, because of italy's severe drought. the country has experienced one of its driest springs for 60 years. one of the pope's most senior advisors is due to appear in an australian court on wednesday, to face charges of sexual assault. cardinal george pell has returned from rome, saying that he is innocent, and will clear his name. i will be back with a news review.
now it's time for world business report. hit by the eu — profits fall at google‘s parent company alphabet, after a huge fine levvied by the european union. and bitcoin — what's it for? well, now you can use the cryptocurrency to pay for art. all will be explained. welcome to world business report. i'm rachel horne. in a minute sharanjit will tell us how sk hynix increased its profits by more than 500%. three of the world's most valuable internet firms release their latest numbers this week. the biggest by far is google‘s alphabet, which has just reported a 21%jump in revenues. that was better than expected but there was less cheer on the when it came to earnings. net profit fell 27.7% to $3.5 billion. hitting the bottom line
was a $2.7 billion fine issued by the european commission injune. it ruled the firm abused its power by promoting its own shopping comparison service in it's search results. google says it may appeal. but, alphabet‘s shareprice fell 3% in after hours trading. but take a look at this — over the past nine years the firm's share price has rocketed as it has dominated the internet advertising market. from $140 a share — to just under $1,000 a share. it's now worth more than two—thirds of a trillion dollars. a key area for google is mobile advertising, where it's battling its rival, facebook. but does that mean they are too reliant on one revenue stream? with me is gary reid, managing director forward3d. thank you forjoining me. do you think alphabet is too reliant on one
revenue stream 7 think alphabet is too reliant on one revenue stream? google have proved they can work on different apps which consumers buying into. i think they are but it is also going to be voice searching mobile and that is where google can take a leap forward. this record billion-dollar fine, if we were to take that out of the equation, how would we be looking at the figures? google would say they are really good. the underlying problem is that the cost is rising quicker than their revenue and that is to do with this move towards mobile. if they could get the costs under control, perhaps eve ryo ne the costs under control, perhaps everyone can be happier. how can they do that? it is about looking at they do that? it is about looking at the infrastructure. how they are moving into the cloud is one way
they can get extra revenues from the infrastructure. alphabet, google, facebook, amazon on... how does it compare the big companies at the minute. if we look at facebook, they make a bigger profit on its revenue. google needs to make more money to get similar profits. google do not look at profits by grace and of revenue. they are probably twice the size of facebook at the new battleground is where this is going to come to shore and whether they can do what microsoft do and hold on to the leadership position. google alphabet has other revenue streams. they have the driverless, self driving, they have the android, are those avenues ever going to replace the amount of money they get through advertising? nest is quite an
interesting one, home automation, the more that is integrated into our daily lives, the more the revenue strea m daily lives, the more the revenue stream can start to increase. south korea's sk hynix has reached a new earnings high. they reported this morning that profits rose a whopping 574% compared to a year ago. joining us from singapore is shara njit leyl. those are impressive figures, how have they done it? sk hynix is the chip supplierfor have they done it? sk hynix is the chip supplier for companies like apple and the world ‘s second—largest memory chip maker. they are on track for the largest ever annual profit for the firm. essentially, chip makers are riding a supercycle due to strong remark for computer memory chips. the sk
hynix saying the average selling price have risen by 11% from the previous three months. the selling price fall at the chips have rose 80% but shipments fell a percent —— 8%. trouble japanese conglomerate toshiba, a government backed group and another group have been in a bidding war. in spite of stellar results, i should say the shares have been falling today as investors ta ke have been falling today as investors take profits. art is getting excited about digital currencies. in a first for the tradition—bound art world, one gallery is now allowing its clients to pay using bitcoin, the digital cryptocurrency underpinned by blockchain technology. we found an owner of fine art. it
gives more people an opportunity to experience and to use this new currency. i believe it is going to bea currency. i believe it is going to be a widely used currency in next to no time. the me to request a payment, i go to my wallet. i will give my wallet addressed to the sender and the sender will send me an amount to my address. my wallet is linked to a bank so i can immediately convert the big point
into pounds, euros or dollars. not eve ryo ne into pounds, euros or dollars. not everyone can afford these, it is a luxury business, but more people can have an opportunity to buy and, as a small independent business, it makes sense to broaden your client base. in other news the uk's serious fraud office says it has opened an investigation into british—australian mining giant rio tinto group. the sfo says the probe is into suspected corruption in the conduct of business in the republic of guinea by the rio tinto group, its employees and others associated with it. it is asking anyone with relevant information to get in touch. rio tinto says it will fully co—operate with the investigation. toymaker hasbro has reported a 30 percent bump in its profits. that's due to strong sales of transformers action figures and monopoly board games. however hasbro shares closed more than 9% lower on monday — the most in nine years — after its revenue missed market expectations because of weak sales in regional markets including the uk and brazil. in asia markets have been hitting
multi year highs in recent weeks — that does not look like the markets! that does not look like the markets! today not so much movement — waiting to hear from the 2 day fed res meeting which kicks off today — no change on interest rates expected this time — but there could be more guidance from janet yellen. no. what markets and investors will be looking is further guidance on how the us will begin to tighten its monetary policy. huge amounts of money pushed out into the market. brent crude up that's because of the
meeting in russia and hearing saudi arabia saying they will try to put a and reduce the amount of oil they are producing. looking ahead at america... the nasdaq, it will be in the steam to see how they open. after a ll the steam to see how they open. after all it trading on google alphabet. the share price dropping 396 in alphabet. the share price dropping 3% in after how trading. we will be hearing what the fed have to say at close of play. don't forget you can get in touch with me and some of the team on twitter — i'm @bbcrachelhorne rachel will be back with me for the
news review. foodbanks across the uk are braced for a busy summer, with the lack of free school meals leaving some families struggling. we spoke to one young mum receiving help in salisbury. my my name is sarah and i have a nine—year—old son. i work 16 hours per week so it is quite a struggle. it is foran per week so it is quite a struggle. it is for an adult and child. any dietary requirements? summer holidays i find quite a struggle because of the extra cost in activities and going out with friends. feeding, three times a day. two times extra snacks, extra activities. it all adds up, really. it is making that choice, do i pay
the bills, the rent or third? that is what we are here for, we are here to help. if you need any toiletries all feminine hygiene, we have that as well. and head products? yes, we must look after the head laughter. the prices are going up at the shops. the rent goes up. i think people cannot always keep up because your wage does not seem to go up as much as other things and people have to look at that as well. please, don't be scared to come and see us again if you really need us. we are always hear the people in a crisis. i really appreciated. it is notjust people on benefit that struggle, it is people that work that struggle a little bit more because they get less help from the government.
this is bbc news. the latest headlines: president trump's son—in—law and close adviser, jared kushner, has told congressional investigators that he didn't collude with russia during last year's election. he faces another day of questioning, but insists he has nothing to hide. the parents of terminally ill baby charlie gard are preparing to spend the final few days with him, after ending their legal battle. they say he won't reach his first birthday next week. the vatican has said it is shutting off all its fountains, including those in st peter's square, because of italy's severe drought. the country has experienced one of its driest springs for 60 years. now it is time for our newspaper review.
what is making headlines around the world ? the guardian reports president trump's son—in—law, jared kushner, has denied any collusion with russia during last year's american election, saying his meetings with russians were a normal part of his campaign role. the world economy is benefiting from the strongest upswing in a decade, thanks largely to growth in global trade, according to the international monetary fund. but the imf has downgraded the outlook for the united states and britain for 2018. that story is in the business times. china will protect its borders at all costs, leads the south china morning post, the strongest warning yet from beijing to india over a month—long territory dispute in the himalayas. the row erupted after indian troops tried to stop chinese soldiers from building a road in an area
claimed by both china and bhutan, india's long—time ally. the philippine star covers president rodrigo duterte's second state of the nation address. he warned his controversial war on drugs will be unrelenting, and defended imposing martial law to tackle an islamist insurgency on the island of mindanao. dominating most of the papers in the uk this morning, including the independent, is the heartbreaking decision by the parents of the terminally ill baby charlie gard to end their legal battle to keep him alive. and the daily telegraph warns consumers who buy internet—enabled devices such as televisions and refrigerators are potentially leaving themselves open to hackers.